Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 63-48

1963-1 C.B. 118

Full Text

Rev. Rul. 63-48 /1/

The Internal Revenue Service will not follow the decision in the case of E. O. Bookwalter, District Director , v. Centropolis Crusher Company , 168 Fed. Supp. 33 (1958), affirmed by the U.S. Court of Appeals for the Eighth Circuit, 305 Fed.(2d) 27 (1962).

That decision held that all crushing and grinding operations, including those productive of taxpayer's finest ground limestone, are `ordinary treatment processes' under section 114(b)(4)(B) of the Internal Revenue Code of 1939.

The Service stated that while certiorari was not applied for in the Centropolis Crusher Company case, it considers the decision erroneous and inconsistent with the principles set forth in United States v. Cannelton Sewer Pipe Co. , 364 U.S. 76 (1960), Ct. D. 1849, C.B. 1960-2, 452. See also, Riddell v. Monolith Portland Cement Co. , 371 U.S. 537 (1963), Ct.D. 1875, page 363. The decision is also in conflict with Revenue Ruling 62-5, C.B. 1962-1, 88, which permits, in the case of limestone producers, crushing and grinding processes short of fine pulverization to be treated as ordinary treatment processes in taxable years beginning before January 1, 1962.

/1/ Also released as Technical Information Release 452, dated Feb. 8, 1963.